Oil Prices Surge After Report Of Russia-Saudi Deal To Freeze Production

April 12, 2016 19:57 GMT

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Oil Prices Surge After Report Of Russia-Saudi Deal To Freeze Production

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Oil prices surged to their highest level of 2016 on April 12 after a Russian state news agency report was issued about an agreement between Saudi Arabia and Russia on freezing their production.

The report by Russia’s Interfax news agency on April 12 cited an “informed diplomatic source in Doha” who claimed Moscow and Riyadh have reached a “consensus” on freezing oil production.

The U.S. benchmark West Texas Intermediate for delivery in May gained $1.81 per barrel for a close at $42.17 a barrel on the New York Mercantile Exchange. That was the highest closing price since November.

In London trading, Brent crude oil for June delivery -- the European benchmark -- closed on April 12 at $44.69 a barrel, an increase of $1.86 from the closing price a day earlier.

The global price of oil has been rising for the past week amid speculation that a meeting of OPEC and non-OPECE producers in Doha, Qatar on April 17 could result in production freezes that reduce the global oil glut that has depressed prices.